Once again the Bank of Canada lowered its key interest rate by 50 basis points – to 0.25%. This is the rate the bank charges for short-term loans between retail banks, but it may impact the rates that Canadian consumers get for savings accounts, variable rate loans, and lines of credit.
The Bank of Canada cited its decision to lower rates is aimed at cushioning the economic shocks from COVID-19 and a sharp drop in oil prices by easing the cost of borrowing.
If you have any questions on how this may impact you, feel free to contact me.
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